What Are The Main Four Types Of Term Insurance?

Term insurance is an insurance policy that provides coverage for a certain period. This is usually done by providing coverage against the risk of death, disability or loss of income during the term.

• Increasing term insurance: The coverage increases each year in a specified percentage i.e. 5% or 10% and the total increased sum insured doesn’t cross the basic sum insured chosen by the insured customer.
• Decreasing term insurance: As the name suggests the coverage is decreased each year over some time. The sum insured decreases at a certain percentage each year.
• Return of Premium term insurance: The premiums paid are returned to the customer at the time of maturity and in case of the death of the customer the claim is paid.
• Pure-term insurance: In pure-term insurance, the claim is paid only on the death of the policyholder. No survival benefits are paid to the customer in case of survival till the end of the policy period.